Business for Climate. Operating Costs of Office Buildings by Construction Marketing Group

Report

Business for Climate Operating Costs of Office Buildings

Table of Content

Introduction

Partners

Organisers

About the event

Introductory speeches

Best practices on the Polish market

Operating Costs of Office Buildings

About the project’s initiator

About the project

Key findings

Data analysis

Research sample

Buildings’ description

Data commentary

Research continuation prospects

External experts’ view

Acknowledgements

Construction Marketing Group’s publications

© 2016 BuroHappold Engineering. This document has been prepared by BuroHappold Engineering and SPIE Polska together with the project partners. The contents of this document do not constitute any form of commitment or recommendation on the part of BuroHappold Engineering and SPIE Polska and speak as at the date of their preparation. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electric, mechanical, photocopying or otherwise without the written permission of BuroHappold Engineering or SPIE Polska.

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INTRODUCTION

Katarzyna Chwalbińska-Kusek

Aneta Kłodaś

Marketing & Business Development Manager BuroHappold Engineering Founder – Construction Marketing Group (CMG) Co-chair – EEB Platform Poland

Owner Managing Director Bluevine Consulting

On behalf of myself and Andrzej Rajkiewicz, the National Energy Conservation Agency, co-chair of EEB Platform Poland, I would like to warmly thank every person and each company for their commitment and support in carrying out the project Operating Costs of Office Buildings as well as for organizing the Business for Climate conference. I should also like to extend my special thanks to the Mayor of City of Warsaw for taking the honorary patronage over the event. In 2013, as part of the Construction Marketing Group (CMG) activities, the project Analysing the Sustainable Construction Market in Poland was initiated. We undertook a research to show the perception of sustainable buildings among developers, investors and main tenants in order to determine trends and values of green buildings on the Polish market. The study has helped us to identify the areas for improvement as well as raise awareness of sustainability issues and their social and economic benefits. In 2014 we launched the second phase of the project involving collection of data which would confirm the viability of sustainable buildings. On 17 June 2015, together with our partners, we published White Paper entitled “Health and Productivity in Sustainable Buildings”. On 22 June 2016 during the Business for Climate conference, organised in cooperation with European Sustainable Energy Week, featuring Deputy Mayor of Warsaw, the representative of World Business Council for Sustainable Development (WBCSD) and the key players from the construction and commercial real estate market, I had the honour to present long-awaited data on the energy consumption in 48 office buildings on the Polish market.

We decided to become the co-organiser of Business for Climate as we believe that aligning strategic goals with climate change and confronting them is one of the biggest challenges the cities and the construction sector are now facing. Together with the project partners we have managed to create an in-depth internatial event, which focused on discussing the commitments of the COP21 in Paris and its impact on international business. The Business for Climate conference attracted considerable attention, which shows the importance of COP21 climate summit commitments and energy efficiency. Such pioneering projects as Operating Costs of Office Buildings draw a lot of interest and are example of the shift in the attitudes of building owners, tenants and employees towards climate change. Together with the project partners we have prepared a unique publication summarising the Business for Climate event and presenting the data on energy consumption in office buildings in Poland. The value of the publication lies in the commentaries our experts provided. Business for Climate is a cyclical event, which we hope will become a fixed date in the industry’s calendar.

The aim of the Business for Climate conference is to unite the Polish market in order to be more sustainable. This publication summarises topics addressed during the first edition of Business for Climate. 1

PARTNERS Strategic partner

Honorary patrons

Content partners

Partners

Operational Costs of Office Buildings Project Coordinator

Operational Costs of Office Buildings Project Partners

ORGANISERS

Bluevine Consulting specializes in dedicated business development services, supported by Polish and international media, to help their clients reach out to potential business partners and clients. We have extensive experience organizing international business events, conferences, networking events as well as providing public and media relations services in Europe. We help business partners connect by bringing together and facilitating contact between representatives from the worlds of business, science and local authorities. Our dedicated events have become obligatory items on the agendas of investors, local government representatives and the media. Our most recognizable event series include: International Forum Of Home Appliances Manufacturers And Suppliers In Europe; Automotive Investments in Dąbrowa Górnicza; Green Light For BSS; Spotlight Hotel Investment Poland & CEE; Logistics. Investments. Future; International Innovations Forum: New Technologies – New Horizons and Business for Climate.

www.bluevine.pl

The EEB Platform Poland brings together EEB stakeholders in Poland and coordinates actions with the overall objective of helping Poland to adopt a more progressive agenda for the EEB that brings about multiple economic and societal benefits. The EEB Platform actions include: • Promoting market cooperation • Raising awareness on energy efficiency and co-benefits • Creating a benchmarking system for private and public buildings • Promoting greater EEB awareness, knowledge and skills in Poland The initiative is part of the World Business Council for Sustainable Development (WBCSD) EEB 2.0 project, and brings together key local partners that cooperate toward common objectives.

Business for Climate #BusinessForClimate

@EEB_Poland

#EUSEW16

About the event

The main goal of the meeting was to discuss the COP21 commitments and the summit’s impact on business. Invited speakers and numerous guests attempted to answer the questions: Do the COP21 commitments boost energy efficiency in the construction market? How to use data showing the power consumption? What are the best practices on the Polish market? The executive business breakfast, with the Mayor of City of Warsaw and Warsaw Branch of the Association of Polish Architects honorary patronages, was organized in cooperation with European Sustainable Week – a series of events initiated by the Executive Agency for Small and Medium-sized Enterprises (EASME) in Directorate-General for Energy partnership, to promote activities aimed at saving energy and using renewable energy sources. The subject of energy efficiency was an important highlight of the meeting, accompanied by the premiere of Operating Costs of Office Buildings project – the first analysis on the Polish market showing

operating costs of commercial office buildings, based on actual media consumption. How to create buildings with nearly zero energy consumption? This question was answered by representatives of the National Energy Conservation Agency, Vice President Andrzej Rajkiewicz and Joanna Rucińska. Representatives of companies involved in activities protecting the climate, i.e. Armstrong, Akzo Nobel Decorative Paints, BNP Paribas Real Estate, BuroHappold Engineering discussed best practices on the Polish market.

INTRODUCTORY SPEECHES

Michał Olszewski

Roland Hunziker

Deputy Mayor of Warsaw

Director Sustainable Buildings and Cities World Business Council for Sustainable Development (WBCSD)

The activities aimed at providing solutions to climate change form an important part of the development strategy for the City of Warsaw. The Capital of Poland acts responsibly, placing a strong emphasis on sustainable development, thus taking active steps towards jointly addressing environmental challenges. We are part of the Covenant of Mayors committed to reducing GHG emissions, as well as we support the Compact of Mayors initiative. We are active in international organizations such as C40, EUROCITIES and ICLEI. We are also committed to reducing transport-related emissions (e.g. by introducing gas and electric buses), as well as participate in projects on smart cities (SHAR-LLM) and on preparation of strategy for adaptation to climate change of the City of Warsaw (ADAPTCITY). Our activities are guided by the Low-Carbon Economy Plan, which will contribute to both reducing emission of CO2and improving air quality in the Warsaw metropolitan area. Each city has its problems and challenges, but they have a different starting point. London banned coal combustion in furnaces as early as 1952. At that time Warsaw decided to continue the development of further coal-burning power plants, which shows the scale of challenges the city has to face today. Care for the environment is the joint responsibility of politicians, cities and businesses. Effective cooperation between local government and business aims at supporting politics in introducing environmentally-friendly solutions and mitigation of climate change. It should be emphasized that business should support cities in promoting energy efficiency.

The 2015 Paris Climate Conference (COP21) saw the creation of the Global Alliance for Buildings and Construction, with 20 countries and almost 60 organizations joining to “put the construction sector on a below 2-degree path”. A mapping by GBPN on commitments pre-COP21 showed the following: • 500 cities committed to reduce CO2 emissions from the construction supply chain, 300 committed to policy actions (regulation, rating, disclosure); 800 cities joined calls to action (by C40, ICLEI, etc.) • Private sector: over 200 companies and private sector platforms committed to reduce energy consumption in buildings; 300 joined calls to action • 90 countries included buildings specifically in their climate action plans, called National Determined Contributions • Under the G20, finance institutions pledged to increase energy efficiency in financing. Are COP21 commitments able to unlock energy efficiency in buildings and cities? The commitments are impressive and show the momentum COP21 created. However, they are not aligned and not coordinated – hence it is not possible to quantify and compare the potential impact of these pledges. COP21 commitments in both private and public sector need coordination. The role of cities and multi-stakeholder platforms, like the EEB Platform Poland, shall be key for this. They perform a critical coordination role, which the market does not naturally provide – to align initiatives and increase awareness as well as knowledge sharing. I believe that well-coordinated cooperation between Polish cities and business will result in many successful actions aimed at securing energy efficiency in the local market. 5

BEST PRACTICES ON THE POLISH MARKET

Armstorng for years considers an influence of acoustical ceilings on the environment at each stage planning, production and utilization. We manage energy resources and raw materials used for production in sustainable way. The Armstrong Recycling Programme has diverted over 15 million square metres globally of used ceiling tiles from landfills since its launch in 1999. It means that old ceilings from renovated buildings do not go to a waste dump but are 100% recycled.

Maciej Kiepal Area Sales Manager Armstrong Polska

Robert Sobotnik Head of Category Management & Profi Akzo Nobel Decorative Paints

Since 1998 Armstrong cooperates in the project of greenhouse gases reduction which main purpose is to reduce energy uses during manufacturing of products. Recently selected Armstrong products are manufactured according to the most advanced global concept of sustainable production ‘Cradle to Cradle’. Armstrong products are succesfully used in BREEAM, LEED and DGNB certified buildings.

AkzoNobel is leading global paints and coatings company and major producer of specialty chemicals. Sustainability is at the heart of everything we do at AkzoNobel. It’s vital for the future success of our company, our society and our planet. Energy efficiency in buildings is very important so we keep on reducing our environmental footprint across the value chain and increasing our use of renewable materials to create more value from fewer resources. Since the product idea to its performance we continue to innovate in order to deliver lower VOCs, use recyclable packaging or increase paint durability. Recent examples include hydrophobic, stain resistant interior wall paint Dulux EasyCare or exterior solar reflective paints. AkzoNobel has been ranked number one on the influential Dow Jones Sustainability Index (DJSI) for the fourth consecutive year. As well as underlining AkzoNobel’s commitment to continuous improvement, the ranking also highlights how the DJSI can play a key role in driving innovation that benefits customers and the whole value chain.

In our new office we implemented a concept of an effective office space with a focus on making our employees’ health and well-being a top priority from the very beginning. Together with market leaders we created a space that is a ‘living lab’ test environment for technical innovations positively affecting health and well-being at work. ‘Health and Productivity’ is now writing a new chapter for the design of green buildings as the vast majority of real costs for any business are connected to staffing costs1, including salaries and benefits, with energy and rental costs accounting for only 10%. As the quality of environments inside buildings determine how people feel, and in turn how their health and well-being impacts their productivity at work, an office building needs to serve people. Studies reveal that employing a series of changes to improve working environments can boost productivity, in many cases directly impacting the bottom line. For example, upgraded ventilation will increase the productivity of workers by 11%2 while better lighting can contribute to 23%3 gains in efficiencies.

Ian Booth Partner BuroHappold Engineering

When designing our office, we have partnered with Philips Lighting, Ecophon, Halton and Carrier to develop a design that could maximise the effectiveness of the lighting, acoustics and HVAC systems. The concept of our office is based on top quality solutions in 8 areas: noise and acoustics, lighting and daylight, air quality, thermal comfort, look and feel, water and energy efficiency, access to amenities, refurbished building and reuse of materials. In our work we provide solutions that are end-user oriented. We want the office to reflect this attitude.

In BNP Paribas Real Estate we place great emphasis on corporate social responsibility. One of key areas of our concern is environmental protection. In BNP Paribas Real Estate’s headquarters in Warsaw we implemented a number of solutions aimed at reducing negative environmental impact. We adopted a paperless document flow, using only electronic invoices and agreements. We have reduced the amount and size of printed promotional materials. We use biodegradable pens. We organise regular internal green campaigns to help improve energy and water efficiency. We also promote e-waste collection among our staff.

Katarzyna Lemańska Marketing & PR Director Central and Eastern Europe BNP Paribas Real Estate

1 World Green Building Council. 2014. Health, Wellbeing and Productivity in Offices. The next chapter for green building, page 6.

http://www.worldgbc.org/activities/health-wellbeing-productivity-offices/ 2,3 Linking Energy to Health and Productivity in the Build Enviroment Evaluating the Cost - Benefits of High Performance Building and Community Design for Sustainability, Health and Productivity: http://www.usgbc.org/Docs/Archive/MediaArchive/207_Loftness_PA876.pdf

Operating Costs of Office Buildings PARTNERS Coordinator

Partners

Patronage

Support for data analysis

ABOUT PROJECT INITIATOR

Construction Marketing Group (CMG) is an initiative for construction and commercial real estate companies. The group brings together people involved in strategic marketing, business development and communication. CMG’s mission is: • undertaking activities aimed at networking • building and promoting strategic role of marketing in the construction and commercial real estate industry • educating the industry in terms of sustainable development and energy efficiency • integration in dialogue with policy makers and professional development of the group members. As part of the CMG’s activities Analysis of the Sustainable Construction Market in Poland was initiated. CMG is a local partner of Energy Efficiency in Buildings Laboratory in Poland organized by the World Business Council for Sustainable Development (WBCSD).

www.cmgpoland.eu www.facebook.com/CMGPoland

OPERATING COSTS OF OFFICE BUILDINGS About the project The project Operating Costs of Office Buildings is a continuation of the report initiated by the Construction Marketing Group in 2013 Analysis of the Sustainable Construction Market in Poland. The goal of this pilot study was to perform an analysis of the energy consumption that would go well beyond the perception level. The project attempts to assess the current situation of commercial buildings in Poland in terms of operating costs by comparing certified (BREEAM or LEED) and non-certified office buildings. The study was to verify the opinion that „certified buildings are characterised by lower energy consumption than non-certified ones” and to determine the feasibility of establishing a base of reliable data.

tations with the industry’s independent international companies and the comparison of the tools used in western Europe (mainly GRESB), we developed a user -friendly survey that was structured in such a way as to enable providing precise and reliable data. The findings of the study will serve as a base for further more complex analysis to build energy efficiency benchmark for Poland. The green buildings market in Poland is developing at a fast pace. According to the reports by Colliers International, from 2014 and PLGBC from 2016, the number of certificates has increased by 100%, which highlights the growing interest from the real estate industry.

As this was the first study of its kind carried out in Poland, the biggest challenge for the teams involved was to create a dedicated data collection tool. One of the project’s assumptions was the necessity to maintain anonymity of the buildings surveyed to encourage their owners and property managers to share their data on energy consumption. Following the consul-

We took the coordinator’s role of Operating Costs of Office Buildings, a pioneering study on the Polish market presenting real energy consumption data in office buildings, in full awareness of how demanding this task was. Our objective as a facility management company was to deliver effective technical management solutions that will contribute to both: real savings and comfortable working environment.

Olga Targońska Marketing Manager SPIE Polska

I would like to express my sincere thanks to all companies involved in the project. We succeeded in both collecting reliable data and promoting collaboration between all stakeholders involved in the building’s life cycle: developers, architects, property managers, technical services. Thanks to their commitment we are able to continuously work towards improving buildings’ energy efficiency.

KEY FINDINGS

Certification raises awareness among property managers, facility management specialists and tenants about the responsible use of the building and its optimal energy consumption.

The energy consumption analysis can be used for both: financial reasons and assessment of the quality of the operation of a given system and the whole building. It is worth investing in the installation of metering systems in various parts of the building, which will enable to indicate key areas for improvement and help to evaluate more precisely the propertyâ&#x20AC;&#x2122;s return on investment.

Maintaining higher user comfort is connected with higher energy consumption. Thus, to effectively manage the energy as well as achieve higher occupantâ&#x20AC;&#x2122;s comfort the energy consumption minimization and user comfort maximization need to be balanced.

The reduction of utilities consumption does not necessarily require considerable financial investments. It can be achieved by e.g. setting power management features on all office equipment that would meet the real staff needs.

DATA ANALYSIS Survey assumptions • To develop a survey that would be simple and user-friendly, encouraging property managers and owners to share data, but elaborate enough to facilitate collecting minimal but sufficient data required for a reliable analysis • To design a tool enabling various methods of measuring the utilities: energy, heat, water • To design a tool providing anonymity of the buildings (excluding location) • To collect data on energy consumption for the whole 2014 • To collect data on office buildings completed before 2014

Buildings’ energy consumption was analysed comparing • Certified vs. non-certified buildings • Buildings with higher rating (BREEAM Very Good and higher, LEED Gold and higher) vs. other buildings • Buildings with certificate at the development stage vs. other buildings • Buildings constructed in a given year (according to three categories) • Buildings’ area • Buildings’ occupancy rate • Buildings’ retail area • Number of occupants

This report is the first undertaking of this kind in Poland. It is also a great success, which proves that the market has opened to data sharing. It is the first research and analysis of the condition of Polish market in our country.

Adam Targowski Sustainability Manager Skanska Property Poland

Energy consumption in buildings is affected by various factors; therefore, the analysis required obtaining a great amount of specific information. On the other hand, the more data, the easier the identification of entities subject to research. The report was to help plan the research that would provide conclusions based on the particular sample and extensive base of collected information, with keeping the buildings anonymous at the same time. The survey allowed people responsible for real estate management to get to know the research methodology. This is an important step in the right direction.

SAMPLE

approx. 17,5% buildings in Poland

26 26

buildings

22 buildings

buildings

most from Warsaw Our goal was to show the state of the market and provide a reference point for subsequent years. From the research point of view, analysed measurements should be as specific as possible, which would enable e.g. the separation of the consumption of the tenant from the use of technical building systems, however, some of this type of data is sensitive and could indicate the occupant of the facility and the nature of its business and that is why we gave up collecting them. Nevertheless, the scope of the collected information should be viewed positively and the test can be considered as a pilot with the possibility of continuing in the future.

Jerzy Kwiatkowski, PhD National Energy Conservation Agency S.A.

BUILDINGSâ&#x20AC;&#x2122; DESCRIPTION Certification rating

BREEAM

LEED

Gold

Excellent

Very Good

Good

Type of certification

22 18

Number of buildings completed in the years

in years: 2000-2010

before 2000

2000

2010

Number of buildings of different m 2 Number of buildings

18 10

13 7

Sq m

Buildings with high energy usage

Server room

Gastronomy space

Car wash Fitness Other

2 13

The range of search sample in terms of space, equipment, age of the buildings is very wide. We have analysed buildings, that were certified at the design stage, as well as those which were completed long time ago and applied for a green certificate during their use. We have defined together, what parameters to accept for the analysis of green buildings. I believe, that it is worthwhile to continue these studies in the coming years, especially that we are observing a growing number of certified buildings on the market, and thus their increasing share in the research sample, which undoubtedly allows us to outline some trends. It will be good to compare media consumption also in relation to the total lease area of the building. It will enable us to estimate the operating costs for tenants. The obtained results can be considered as the basis for subsequent comparisons.

Robert WĹ&#x201A;odarczyk Technical Quality Manager Real Estate Management Services Colliers International

RESULTS COMMENTS

Annual electricity consumption in 2014

In the building:

In office space: kWh/m2/year

kWh/m2/year 400 350

400

max

350

ma x

300 250 200 150

250

averag e median

100 50

max

300

min

averag e median mi n

200 150 100 50

Milena Sikora Associate Project Management Team Leader Savills Property Management

max averag e median mi n

averag e median mi n

According to experts energy costs account for 60% of the buildingâ&#x20AC;&#x2122;s total operating expenses. When considering also the cost of the conventional energy production, we can see that there are a lot of opportunities for improvement. Our report also confirms those findings, although the data was obtained only from several dozen properties. We also found that the use of energy in certified buildings was onefifth lower when compared to non-certified buildings. It can therefore be concluded that green certificates in Poland are no longer just a marketing gimmick, but a tool to build a better future. A key part to successful implementation of energy efficiency, however, are changes in legislation, which in our country are still waiting to be applied.

Annual utility water usage in 2014

In the building:

In office space:

m3/m2/year 0.8

m3/m2/year

ma x

0.7

0.8

max

0.6 0.5 0.4

0.6

median averag e

0.3 0.2

0.7

min

0.5

averag e median mi n

0.4

max median averag e

0.3 0.2

0.1

0.0

min

The analysis of the data collected demonstrates that non-certified buildings have a higher average utility water usage when compared to certified buildings. The opposite is true, however, if we only take into account office space. When analysing total water usage in an office building we have to bear in mind that typically it also accommodates retail area, restaurants, bars and sometimes a car wash located in an underground car parks. All utilities are metered and reducing water consumption in such areas proves much more difficult than in case of office space, where the simplest solution to limit the water use (by as much as several dozen percent) is to install aerators or water-efficient fittings and appliances.

max

averag e median min

Marcin Skierkowski Senior Technical Manager Property Management Knight Frank

Total annual thermal and electrical energy usage in the buildings in 2014

kWh/m2/year electrical energy

thermal energy

400 350

max max

300 250 200 150

ma x averag e median

100 50

mi n

averag e

max

median min

averag e median min

MichaĹ&#x201A; Jaraczewski Project Manager Project Management and Consultancy Cushman&Wakefield

The above graph, which compares the values of energy consumption, suggests that there is no clear difference in both types of energy use between certified and non-certified buildings. It must be noted that the period of measurement in case of certified buildings is relatively short and in a long term perspective those statistics can change. Another factor, however, must be taken into account â&#x20AC;&#x201C; the quality of work environment. To ensure its high quality, installation of additional equipment is required, which is likely to lead to higher energy and water use. This finding can be thus interpreted as a improvement of quality of the internal environment and buildingâ&#x20AC;&#x2122;s performance, which, in our opinion, is closer to truth.

Total annual energy usage in the buildings by offices and other space in 2014

kWh/m2/year 150

120

other space

The data suggest that in case of certified buildings the share of office spaces in total consumption is smaller than in non-certified buildings. Data on other than office space indicate a proportionally higher consumption in certified buildings. It is hard to draw a clear conclusion but two explanations seem viable: 1. In certified buildings due to a more sophisticated sub metering the energy consumption of office space can be captured in a more precise way than in the non-certified buildings and as such may seem lower. 2. Certified buildings as having a larger range of amenities are equipped with more energy consuming systems outside the office areas. Only a confrontation with data from future editions of the survey may allow for a confirmation of the initial conclusions above.

Jan CieĹ&#x203A;la Associate â&#x20AC;&#x201C; Sustainability BuroHappold Engineering

RESEARCH CONTINUATION PROSPECT

The pilot study’s findings form a perfect basis for the extension of the research. All the more so that the consistent dynamic development of the real estate market, including green certification sector, enables access to wider data. The extension of our research tool would also increase the chance to demonstrate certain dependencies between office buildings and their operating costs.

Piotr Strzyżewski Technical Specialist SPIE Polska

Sustainable development and green certification are much more than simply the activities aimed at reducing energy consumption. It is a complex process focusing on a wider principle of 3R - reduce, reuse, recycle, which cannot be implemented at the costs of comfort and health of the occupants. It must be remembered that those processes do not refer to the operational stage of the building but to each stage of its life cycle – from the design through development to demolishing or refurbishment. In the words of Michał Olszewski, the Deputy Mayor of Warsaw, who said during the Business for Climate meeting: “Some pro-ecological objectives cannot be reached without active participation of the city’s residents”, we - the representatives of the real estate industry, united in a research team, also understand the need of active collaboration between all people involved in the building’s life cycle, including its end-users. We hope that strong interest in this pilot study will result in further market activities and collaboration.

EXTERNAL EXPERTSâ&#x20AC;&#x2122; VIEW

arch. Justyna Biernacka Sustainable Plenipotentiary Warsaw Branch of Association of Polish Architects

Are the ideas declared in green building certificates reflected in reality? All of us, contributors in the process of creation and use of buildings, from city authorities to developers, architects, engineers, constructors, facility managers and real estate agents, we want to create buildings that combine the beauty of architecture, technology perfection, comfort of use, environment friendliness and cost effectiveness. But can we achieve it? The unprecedented first edition of the this report prepared by the most signifficant players of the Polish real estate market gives us a hint. An in-depth study of the data acquired by the research team lets us understand the complexity of design and management issues and define key areas for reduction of operating costs of the best designed buildings. I would recommend the report to all architects as a valuable inspiration towards design of innovative projects ensuring long term satisfaction for their owners and tenants.

Nikodem SzumiĹ&#x201A;o, PhD Post Doctoral Research Associate Department of Land Economy University of Cambridge Although rental and sale price premia continue to be reported in sustainable buildings around the world the causal relationship between the two remains unclear to real estate researchers. In some markets they appear to be a relatively strongly correlated but if sustainability creates financial value the mechanics of how this happens is still a mystery. The most basic expectation of a cost benefit resulting from resource conservation remains difficult to show. In fact, some reports indicate that a higher consumption of energy and water may be associated with sustainability certification. It is possible that the behaviour of tenants and building managers has a larger impact on resource consumption than its structural characteristics. If that was true then although cetris paribus labelled structures would be more efficient, sustainability certification would be a poor indicator of utility bills unless human behaviour is controlled for. The data collected for this project appears to confirm that perspective. Not only little correlation is found between resource consumption and certification but there are also large variations between individual buildings in how much energy and water they use. This highlights another common problem of explaining resource consumption: unobserved differences between buildings can have a profound influence on the water and energy demand. While it is unclear what characteristics correspond to lower consumption the collected data shows the scope for building managers and tenants to take ownership of how resources are used in their properties and manage their costs as well as environmental impact. Data analysis comments Despite a relatively small sample size, statistical modelling of the data yielded some interesting results. After controlling for all reported variables it became clear that sustainability certification had no statistically significant relationship to resource consumption. In fact, very few variables had and none binary indicator appeared to determine resource consumption. It is likely that this is a result of data limitations. The strongest finding was that buildings erected before year 2000 used much less energy. While the reason for this relationship cannot be inferred from the data, it suggests a very interesting relationship. Another intriguing finding was that even after controlling for office and heating energy consumption only 50% of variance in total energy was explained. This suggest that there is a source of considerable differences in energy use that has not been identified by the survey. Although higher occupancy rates correlated to lower energy consumption it is difficult to suggest a causal relationship as low vacancy may indicate other important characteristics such as quality or rent. Interestingly, in addition to the vacancy effect properties with fewer occupants appeared to use more energy. While the limited data do not allow drawing any significant conclusions they indicate large unexplained differences between resource consumption in individual buildings. Uncovering what determines these variations could be the key to efficient and sustainable property management.

ACKNOWLEDGEMENTS We would especially like to thank the following individuals for their engagement in Business for Climate conference and Operating Costs of Office Buildings project:

Business for Climate: Michał Olszewski, City of Warsaw Leszek Drogosz, City of Warsaw Marcin Wróblewski, City of Warsaw Roland Hunziker, Business Council for Sustainable Development (WBCSD) Justyna Biernacka, Polish Association of Architects SARP Ian Booth, BuroHappold Engineering Maciej Kiepal, Armstrong Katarzyna Lemańska, BNP Paribas Real Estate Andrzej Rajkiewicz, National Energy Conservation Agency S.A. Joanna Rucińska, National Energy Conservation Agency S.A. Robert Sobotnik, AkzoNobel

Operating Costs of Office Buildings: Jan Cieśla, BuroHappold Engineering Michał Jaraczewski, Cushman & Wakefield Jerzy Kwiatkowski, National Energy Conservation Agency S.A. Wojciech Lipniowiecki, Cushman & Wakefield Milena Sikora, Savills Property Management Marcin Skierkowski, Knight Frank Piotr Strzyżewski, SPIE Polska Adam Targowski, Skanska Property Poland Robert Włodarczyk, Colliers International Artur Wysocki, Skanska Property Poland We should like to extend our special thanks to Nikodem Szumiło PhD, for the objective commentary he provided on the research; to Marta Lenarczyk, SPIE Polska, who initiated the project coordination; to Dominika Czerwińska, World Green Building Council, for her support of the project from the very beginning and finally, to Andrzej Rajkiewicz, NAPE, for co-chairing the EEB Platform Poland. Report concept and coordination BuroHappold Engineering Bluevine Consulting SPIE Polska

Graphic design BuroHappold Engineering

CONSTRUCTION MARKETING GROUP PUBLICATIONS Analysing the sustainable construction market in Poland Does the Polish market recognise the benefits of sustainable building? How does it perceive operational and maintenance costs throughout the whole life-cycle of these buildings? How is green building certification perceived in this market? – The answers to these questions and more can be found in the report. It considers not only the operating effectiveness of green buildings but also the perception around their economic value. The aim was also to learn what the participants in the construction and real estate sector currently understand by “green” or “sustainable” building. This study shows that the understanding around the value of green buildings is improving but we still have a long way to. While participants attribute reduced long term operational and maintenance costs as a benefit, they were not able to make a strong link between green buildings and workplace health and productivity. The study also explores the perceptions of developers around design and construction costs, whether investors link green buildings with risk management, as well as the willingness of tenants to pay more for green buildings. Click to open the report

White Paper “Health & Productivity in Sustainable Buildings” The document aims at encouraging companies to explore the real influence buildings have on employees working in them by introducing a global methodology that can be used by business in Poland. WHITE PAPER

HEALTH AND PRODUCTIVITY IN SUSTAINABLE BUILDINGS Strategic partners

Project leader

The white paper is specifically aimed at investors, business leaders, tenants and real estate agents. It includes the most crucial information concerning the influence of sustainable building on health and efficiency of employees and introduces the benefits resulting from green solutions for companies, such as a decrease in absenteeism and staff turnover which, in turn, leads to an increase in efficiency. In the long-term, these factors can have a significant impact on a company’s financial results. The White Paper ends with a list of significant engineering considerations that tenants and investors should focus on while designing office space. Among them are factors such as thermal comfort, noise, acoustics and the building’s internal configuration.

Project partners

The project is under the patronage of the Ministry of Economy, the World Green Building Council, and the Polish Green Building Council. Click to open the report

Contact

Katarzyna Chwalbińska-Kusek EEB Platform / CMG / BuroHappold katarzyna.kusek@burohappold.com mobile +48 662 166 710 Olga Targońska SPIE Polska olga.targonska@spie.com mobile + 48 785 991 646 Aneta Kłodaś Bluevine Consulting aneta.klodas@bluevine.pl mobile +48 509 332 606